It would be really nice if we could wish our bad credit away. Presto Chango and suddenly you have a 750 credit rating. But it simply just does not work that way. Those people with good credit can tell you that they had to work pretty hard to get that good score.
Good Credit is not impossible to get but it is much more difficult if you have a poor credit score. If you have a bad credit score and just are not sure where to start, take a look at the following tips.
Start by clearing up your credit report. Make sure that it is accurate and reporting completely accurate information. If it is not accurate then start disputing anything on your report that is inaccurate or misleading. Almost everything on your report will fall under four categories.
Accurate – Everything in the listing is completely accurate
Inaccurate – Something being report is inaccurate (Balance, dates, etc …)
Misleading – The item is reporting but the way that it is reporting is misleading
Not Yours – This item does not belong to you and should not be on your report
If a listing is accurate then there is no reason to dispute it. If a listing is falling under one of the other three categories then you should be disputing it until it is reporting correctly. If you have quite a few problems, then you may want to look into hiring a professional to dispute for you. A Good Credit Repair Company can dispute to all three bureaus for you. This will save you a bunch of time and effort in getting them corrected at each bureau. You can dispute on your own if you want but if you have quite a bit to dispute, hiring a professional might be better.
Once you have your credit report accurate then start doing the things that will help your score. Most importantly is to pay your bills on time and in full. Late payments are 35% of your credit score and will haunt you for up to 48 months if you make a payment late. Next is to reduce your debt. Keep your debt below 30% of your available credit. If you have a credit card with a $ 1000 limit, then do not charge more than $ 300 and pay your balance on time. It is best not to make minimum payments but even if you have to one month, pay that amount on time no matter what.
Having a Mortgage Payment or Automobile payment is good but you must make those payments on time. A late payment here will hurt your score and could last for up to four years. Keep in mind that any credit you have and are making payments on is important to your credit score. Managing your credit is critical to a good credit score.